Lucie, a well-known content marketer for Shiba Inu ecosystem, took to Twitter to share important information about Shibarium’s game-changing potential in promoting SHIB token burning. Lucie’s tweet soon found traction, gaining 57.5k engagements and demonstrating the community’s enthusiasm for this game-changing feature.
Lucie stressed Shibarium’s possibilities, emphasizing how this Layer 2 protocol would revolutionize the burning mechanism, resulting in a significant reduction in the supply of SHIB tokens.
$SHIB BURNS X #Shibarium, #Shibarium significantly impacts the Shib ecosystem by introducing a burning mechanism that reduces the supply of $SHIB . When users make transactions on the network, the base fee is locked on a Shibarium contract, while the priority fee is paid to… pic.twitter.com/uhqvwDWgdW
— 𝐋𝐔𝐂𝐈𝐄 (@LucieSHIB) June 30, 2023
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Understanding Shibarium’s Functionality
Shibarium works by locking the transaction base price into a specific contract. Validators receive the priority fee at the same time. The base fee is divided, with 70% of it being used to burn SHIB tokens and the remaining 30% being used for network maintenance.
Fees collected are accumulated and saved in BONE. The collected BONE tokens in the burn contract play a critical role in initiating the burn process. These BONE tokens are swapped for SHIB tokens in order to feed the burning process and reduce the overall token supply.
Shibarium also has a user-friendly website, with an easy-to-use “Initiate burn” option. Users can quickly confirm the transaction by clicking on this button, resulting in the permanent removal of SHIB tokens from circulation.
Advantages of Shibarium
Shibarium’s burning mechanism provides various advantages to the Shiba Inu ecology. To begin, it imbues SHIB tokens with deflationary qualities, progressively decreasing the token supply.
The token’s value rises as a result of its deflationary nature, generating a perception of scarcity that benefits SHIB token holders. Furthermore, the mechanism aids in the maintenance of a balance between supply and demand within the Shiba Inu environment.
Lucie went on to explain how the burning process encourages user participation. Users efficiently contribute to decreasing the overall supply of SHIB tokens by accumulating BONE tokens and actively participating in the burning process.
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Lucie’s findings drew a lot of attention from the Shiba Inu community, with aficionados expressing high hopes for the blazing potential. One forum member even suggested that monthly burning may exceed 20 trillion or 5 trillion tokens.
However, it is crucial to remember that these estimated figures are currently theoretical, as properly estimating the burn rate is difficult. Shibarium’s ability to assist Shiba Inu burn victims is largely determined by the network’s adoption rate.
Similarly, another community member emphasized the importance of early adoption in order to capitalize on the current bull market, allowing new members to become acquainted with the Shiba Inu ecosystem.
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